As the digital marketplace grows, so do the deceptive tactics of criminals looking to exploit unwary South Africans searching for bargain car deals. A concerning trend has emerged where scammers clone the websites and advertisements of recognised auctioneers and banks, tricking unsuspecting buyers into paying hefty deposits for non-existent vehicles.

The South African Institute of Auctioneers (SAIA) has issued a dire warning for potential car buyers to exercise extreme caution when navigating online platforms. They emphasised the importance of utilising official company portals rather than relying on social media platforms that could lead them straight into the arms of fraudsters.

Sonja Styger, Chief Administration Officer at SAIA, said these scams predominantly thrive on platforms like Facebook Marketplace.

“Cars advertised well below market value are enticingly ‘reserved’ for buyers willing to pay upfront,” she explained. However, it’s crucial for buyers to remember that South African law prohibits selling auction assets at fixed prices. In many instances, these so-called sellers offer vehicles at predetermined prices, pressing potential buyers to pay a deposit to avoid losing the car to auction.

“It’s a blatant red flag,” Styger warned. “Scamsters know the general public may not understand how auctions work, and they capitalise on that ignorance. An auction doesn’t have a fixed price—the highest bid when the hammer falls determines the price.”

The deceptive nature of these scams extends beyond auctioneers. Even top vehicle finance providers in South Africa are being impersonated, creating fake accounts on platforms like TikTok and Facebook. These accounts use stolen branding to offer repossessed vehicles at knockdown prices. Buyers often find themselves asked to pay a “reservation” fee to secure the car before it supposedly goes to auction.

What makes these scams particularly insidious is their sophistication. Fraudsters mimic the communications and logos of legitimate companies with alarming precision, making it difficult for many individuals to discern the real from the fake.

Here are some clear warning signs to watch out for:

• Fixed pricing: Auctions must adhere to South African auction law; fixed pricing for auction vehicles is illegal.
• Payments through informal channels: Watch out for requests for payment via WhatsApp or direct bank transfers. Always opt for secure, verified platforms.
• Lack of verification: A reputable auctioneer will have a verifiable company registration and physical address.
• Poor ad quality: Be cautious of poorly written advertisements with vague vehicle details.
• No refundable deposits: Genuine auctions, registered with SAIA, require a deposit for participation but never to secure a specific car in advance.
• Inspection: Always view the vehicle beforehand. Never transfer money unless you’re fully satisfied with its condition.

To mitigate the risk of falling victim to these scams, SAIA urges consumers to rely on SAIA-registered auctioneers and check credentials before engaging. They maintain a verified list of trusted members on their website at www.auctioneering.co.za, along with contact details to help verify any social media listing or auction advertisement.

“If a buyer is unsure about an advert or auctioneer, take five minutes to contact us for verification,” advised Styger. “Trust your instincts. If something feels unsettling, it’s better to miss a great deal than to lose your savings to a scam that was never real to begin with.”

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